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Component remanufacturing: a new prospective profitable business approach for the Indian automobile sector

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  • Malolan Sundararaman

    (Nathional Institute of Technology Tiruchirappalli)

  • Mathirajan Muthu

    (Indian Institute of Science)

Abstract

In the last 60 years, remanufacturing has evolved as the major way for recovering value from products or components of the product, because the remanufactured product or component is not only cheaper than those obtained from conventional sources of manufacturing and/or purchasing, but the outputs are also “good-as-new”. The automobile sector, in particular, has seen predominant remanufacturing. Given the benefits of remanufacturing, this study proposes a new prospective business approach, particularly for the Indian automobile sector by introducing component remanufacturing. Particularly this study considers Multiple Products (MP) that are assembled by proposing Component Remanufacturing (CR) as a new source along with regular manufacturing and purchasing sources for components. In addition, this study considers the complexities of “Backordering (BO)” along with a new proposal for “Product Substitution (PS)” option to satisfy demand. Hence, the research problem considered in this study is referred as “MP-CR problem with BO&PS”. For this complex and new problem, the study empirically demonstrates that the MP-CR problem with BO&PS is a new prospective profitable business approach in comparison with the existing “Multi Products problem with Backordering (MP problem with BO)” for an Indian automobile OEM, by proposing a mathematical model with the objective of profit maximization.

Suggested Citation

  • Malolan Sundararaman & Mathirajan Muthu, 2020. "Component remanufacturing: a new prospective profitable business approach for the Indian automobile sector," OPSEARCH, Springer;Operational Research Society of India, vol. 57(4), pages 1244-1280, December.
    • Handle: RePEc:spr:opsear:v:57:y:2020:i:4:d:10.1007_s12597-020-00457-6
    DOI: 10.1007/s12597-020-00457-6
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    References listed on IDEAS

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